Why Alternative Earning Strategies Offer Larger Earnings

Posted by Daniel Chen on Friday 14 Oct 16

The Current Landscape of Traditional Earning Strategies

The Imbalance of Supply and Demand

Individuals using their assets to make more money from traditional types of investments have taken it on the chin for the past three decades.  One of the issues is that the world of traditional investing is oversaturated with available capital. As a result of this oversaturation, interest rates and stock dividends that are being offered are extremely low compared to historical trends. The interest rate and stock dividends, in effect, are the "price" large businesses pay investors for their money. Since the supply of available capital is so high, these large corporations don't have to pay a high "price" to obtain capital which results in low earnings for the individuals supplying the cash.  

 

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Despite the fact that there is a surplus of capital just waiting to hit the market, there are still a large amount of borrowers who are applying for that money but are disqualified. The vast majority of the disqualifications are being done by the banks and other traditional lenders. In a survey done by the Federal Reserve Bank of New York, they found that only 13% of small businesses received the full amount they applied for. In the end, that results in a high supply of capital but a low volume of qualified demand. Simply put, this means a low cost of capital for the brands and in turn low earnings for the individuals.  

The Emergence of New Solutions

So what happens to the unqualified businesses still looking for capital?

They either had to scramble to obtain personal loans or found themselves facing essentially loan sharks who charged unacceptable rates because they appeared to be the only ones willing to lend. Thanks to the internet and new innovative online platforms, it's now possible for individuals looking to grow their wealth to work with those small businesses and actually earn more than traditional strategies.

Online Consignment

One of the newer forms of partnering with these small businesses is Online Consignment. With Online Consignment, individuals partner with existing product brands that have a track record of sales. Instead of investing in a business, you buy their physical inventory on consignment, and profit as it's sold.

Online Consignment has become one the leading strategy when it comes to partnering with product brands looking for capital because it is a solution oriented strategy. These product brands need capital to grow, and you need a way to earn.

As we all know, product brands make creative, unusual and exciting products; however, manufacturing the products costs money that the brands don't have yet because they don't have the revenue from selling the products that don't exist yet. Essentially, the product brands need to spend money to make money. Having the capital to spend is where Online Consignment comes in.

 

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With these new Online Consignment platforms emerging like Kickfurther, these product brands raise the capital they need to produce inventory (the capital to spend) from individuals like yourself by entering a consignment agreement. They use the capital to source or manufacturer their products (spend money) which they then sell for a profit (to earn money). As their products sells, they split the profit with the individuals who supplied the capital. Usually the process takes around six months and individuals earn sizeable amounts. Kickfurther's community has earned over $5 million dollars since its inception in early 2015.

In effect, Online Consignment is your opportunity to earn a share of the retail market without ever having to think up the product, design it, carry out market research, package it, make it, ship it or run a website. The product brands have already done all of the leg work and have a proven history of selling.

Offering Larger Rewards

With new models emerging like Online Consignment, the demand of money from growing businesses that don't have access to traditional capital supplies is now being met by individuals who are willing to try new methods in their earning strategies. In return for the capital they supply, these individuals typically earn more since there is a lower supply of money being loaned to a high quantity of brands.

As more and more individuals supply money, the price that businesses are willing to pay for that money will lower. What does that mean you may ask? Only that it's better to act now and earn.

 

See How One Kickfurther User Earned $50K

Topics: Educational

Posted by Daniel Chen on Friday 14 Oct 16
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